Worked examples / Overheads

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A tool almost nobody opens. Most of what is cut really was spare, so this one holds up.

The saving holds

The saving holds: $15,033 ahead after every cost is counted.

The saving, on paper$18,000over 3 years

What it costs$2,967counted over the same years

On paper it is worth $18,000 over 3 years.
What it costs comes to $2,967: every $1 of saving costs $0.16.

Put in your own numbers

This is a worked example with illustrative figures, not data about any real person or company. Change any of them in the calculator and the answer changes with them.

How this answer was worked out

One-time cost	$0
Earnings lost because of it	$2,917
Side costs	$0
Cost of having to undo it, by its chance	$50
What it costs in all	$2,967
Cost per $1 of saving	$2,967 / $18,000 = $0.16
Result at the end	$15,033

Every formula is written out on the formulas page.

What the calculator asks you

The expected saving each year
The one-time cost of making the change
What the thing being changed was earning
How much of it is affected, and how much of that was truly spare
Which parts of the business rely on it
The chance of having to undo it

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How this answer was worked out

What the calculator asks you

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